2026 Update
As students across Canada continue to face an accommodation shortage, public and private entities are evolving to support students. Although the shortage of purpose-built student accommodations (PBSAs) has been an ongoing topic, the magnitude of the shortage itself is lesser known. The result is particularly acute in Canada’s 20 largest university markets, which host approximately 1.5 million students but offer only around 170,000 beds.1 As we continue to tackle this severe shortage, policy changes across Canada are changing how efficiently we can develop PBSAs, and more importantly, encouraging public and private entities to evaluate where we have room to improve to support the next generation of Canadians.
Progress on the Ground
1
Ontario’s Bill 185
Ontario’s Bill 185, which exempts publicly assisted universities from the Planning Act and site plan control provisions under the City of Toronto Act, continues to support new student housing development. Also known as the “Cutting Red Tape to Build More Homes Act”, Bill 185 is streamlining student housing development on university-owned land.2 This policy was enacted to encourage private-public partnerships, which can develop faster under these exemptions.
2
Apartment Construction Loan Program (ACLP)
Although less direct than Ontario’s Bill 185, the ACLP’s inclusion of purpose-built student housing is an encouraging step for private development. At a high level, this program provides fully repayable, low-interest loans for rental projects, including on- and off-campus student housing.3 Incentivizing development through low-cost financing support continues to be necessary in initiating development in the sector.
3
International Student Caps
In 2025, the federal government released the 2026-2028 Immigration Levels Plan, which outlines the target levels for temporary residents, including international students. As per their plan, international student admissions are expected to be cut in half in 2026.4 With a large percentage of student populations formed by international peers, these policy changes will ease demand for existing students. It is important to note that, even as government policy works to relieve supply pressures, new developments will remain necessary to address existing acute shortages.
Chart 1: Declining Size of New Cohorts of International Students5*
*Observed (2015/2016 to 2023/2024 and estimated (2024/2025 and 2025/2026)
Room to Grow
One area worth examining is policy targeted specifically at student housing rather than municipalities. Ontario’s Bill 185 is a positive development for PBSA developers and students, but its impact on Canada’s broader student housing shortage is limited because it applies only to Ontario institutions. Other provinces have introduced their own housing policies, such as British Columbia’s Housing Supply Act, but these measures are directed at municipalities rather than universities.6 BC universities do not receive the same direct benefits available to Ontario universities under Bill 185. As provinces look for ways to address student housing shortages, policies modelled on Bill 185 could help stimulate development by directly supporting this sector.
As is true in addressing any shortage, there is no single solution to a challenge that requires coordination between public and private stakeholders. Canada has made progress through policy and financing initiatives, but significant work remains to fully address the nation’s student housing shortage.
Footnotes
- Real Estate Magazine. 2024. Addressing Canada’s student housing crisis with industry. The role of purpose-built solutions.
- Build Canada. 2025. Solve the Student Housing Crisis.
- Scion Advisory Services. 2024. Requirements Announced for CMHC Student Housing Loan Program.
- CIC News. 2025. What international students need to know about Canada’s Immigration Levels Plan 2026-2028.
- Statistics Canada. 2026. Feasibility study: Estimating the international student population in Canada using administrative data.
- Storeys. 2025. Housing Supply Act Regulations Reveal BC Gov’s Metrics, Full 47 City List.
2025 Update
“When it comes to market positioning, unit mix, amenities, and branding, one of the most important lessons we’ve learned is to truly listen to students and their parents—the end consumer ultimately shapes your strategy.”
As we mark the first anniversary of this article, it’s an opportune time to re-examine the fundamentals of Canada’s purpose-built student accommodation market. Compared to a year ago, many of the same challenges persist. Student housing supply remains constrained across Canadian post-secondary institutions, with affordable options still in short supply. While universities have made efforts to expand on-campus housing, development takes time. Even with new projects underway, demand is expected to outpace supply. Desjardins forecasts that, despite accelerated growth in purpose-built housing stock, Canada will still fall short of meeting student demand.1 As a result, the sector continues to present strong investment opportunities, offering attractive returns and long-term fundamentals for private developers.
Canadian PBSA Market Forecasted to Remain Undersupplied
PBSA: Purpose-built student accommodation
* Total number of PBSA beds (public and private combined) divided by the total number of students (domestic and international combined)
Figure 1: The plot showcases the need for investment in the PBSA market as forecasts highlight student population continuing to outpace available beds.1
Footnotes
- B, Randall. (2024). Opportunities and Challenges of Investing in Purpose-Built Student Housing in Canada. Desjardins.
2024 Update
*All the information has been revised and updated as of June 2025*
Market Overview
The underserved student housing market is suffering from rental supply shortages caused by accelerated demand, creating a unique opportunity for investors. In 2023, Canada experienced a 29% increase in international students, with a large portion attending Ontario universities.1 Residence buildings located on campus and privately owned off-campus buildings provide about 155,000 beds representing only 16% of full-time student enrollments. Of this total, about 52,600 beds are located in off-campus privately owned buildings.2
Enrollment Trends at Major Canadian Universities
Figure 2: The plot demonstrates enrollment over the past three years, which has remained relatively consistent across Major Canadian Universities.3 Although enrollments may be impacted by stricter immigration policies forecast to decrease the presence of international students in Canada, the existing student body significantly still outweighs the available on-campus housing.
On-Campus Bed Availability at Major Canadian Universities
Figure 3: The plot demonstrates the quantity of available on-campus beds for students in 2024. Universities are undersupplied relative to their total student body, fueling demand for on-campus, purpose-built student accommodations.4
Development Trends & Pipeline
To combat the student housing crisis, developments are in the pipeline to work towards an equilibrium. In 2022, British Columbia, Ontario, Quebec, and Nova Scotia added around 5,800 beds, mainly in off-campus buildings. In 2018, the British Columbia government invested in a development that will include buildings to accommodate an additional 8,000 students. This project is expected to be completed in 2028 and will allow students to find housing stress-free and avoid the high student rental premiums.5 According to The Toronto Star, students pay 25% more for housing than the average Canadian renter.6 The University of British Columbia typically has a list of around 6,000 students hoping to be placed into student houses; they recently opened an additional 6,535 beds, with more on the way.7
Vancouver and Hamilton are both undergoing significant developments to manage the rise in student enrollment. Vancouver plans to increase student housing by around 30% and Hamilton by 15%. The University of Western Ontario, located in London, Ontario, is constructing two new residence buildings to accommodate 1,000 students, significantly boosting the supply.8
These are positive steps in the right direction to accommodate students. However, the large void between demand and supply for student housing still has yet to be addressed sufficiently. This indicates that this market will continue to outperform and provide strong returns to those investing in the sector.
Recent Developments and Transactions
The Parkway Lofts
The Parkway Lofts, located at Brock University, is a recently completed project by Campus Suites and can accommodate 543 students. The Parkway Lofts offers 6 different unit configurations and sizes. It is equipped with high-end amenities and appliances. This residence also includes community spaces such as game rooms and study rooms.
The Quad
The Quad, located at York University in Toronto, Ontario, is currently undergoing Phase 3. Forum Asset Management, in tandem with Campus Suite, is the first student housing project in Ontario to break ground under Ontario’s Bill 185, Cutting Red Tape to Build More Homes Act. With completion slated for 2026/2027, the Quad Phase 3 will introduce 841 additional beds across two eight-story buildings.9
Rental Trends and Returns
Short-term returns in the student housing sector are comparable to those of standard multi-family investments. Cushman Wakefield reports cap rates for 2024 multi-family at approximately 4.5%, consistent with Alignvest Student Housing REIT’s analysis.10
In 2023, the student housing sector experienced an all-time low vacancy rate of 1.5%, suggesting that demand for affordable housing is apparent and undersupplied. Furthermore, the requirement that parents sign as guarantors on student leases diminishes collectability concerns. In addition, student housing tenants are enrolled for an average of four years, making the minimum turnover rate 25% compared to 13.6% for the standard market.11 This rapid turnover has allowed landlords to capitalize on consistently rising market rates.
Since most university students live with roommates, this creates an environment to realize higher prices per square foot, as rent is charged per bedroom instead of per unit. In turn, more opportunities for property owners and investors to increase their returns are created in the student housing sector.
Monthly Rent* Benchmark for Private Student Residences in Canada
*Converted from EURO to CAD, based on 2022 weighted average currency conversion*
Figure 4: This plot demonstrates the average student rental costs over the past three years, showcasing the appreciating nature of private student residences but also the need for more housing options to improve affordability for students.12
Footnotes
- Canadian Bureau for International Education (CBIE) – International Students in Canada Infographic
- CW Global – Canadian Student Housing Overview 2023
- McGill University, Queen’s University, University of British Columbia, University of Toronto, University of Waterloo and Western University, Enrollment Reports
- McGill University, Queen’s University, University of British Columbia, University of Toronto, University of Waterloo and Western University, Residence Building Information Pages
- Government of British Columbia
- The Star, September 2022
- CBC News, August 2019
- Western University, August 2023
- Campus Suites, February 2025
- Alignvest Student Housing REIT
- Canada Mortgage and Housing Corporation (CMHC)
- Bonard. (2025). Student Housing Annual Report 2024
